What type of franchises does Chesters grant?

We grant franchises for quick-service Restaurants operating primarily under the CHESTER'S name that sell chicken and sides ("Restaurants"). We began offering CHESTER'S Restaurant franchises in January 2008. However, our former affiliate, also named Chester's International, LLC (the "First Chester's"), whose principal business address was 3500 Colonnade Parkway, Suite 325, Birmingham, Alabama 35243, offered CHESTER'S Restaurant franchises from approximately March 1, 2004, through December 2007. The CHESTER'S Restaurant franchises offered in this disclosure document are primarily for Restaurants to be located within and operated as part of other existing retail businesses, such as convenience stores (our "Restaurant-in-Store" concept), although we occasionally offer franchises for CHESTER'S Restaurants to be located at food court, strip mall, or other non-traditional locations (such as sports arenas or stadiums). Certain information appearing in this disclosure document, for example, outlet information in Item 20, covers all CHESTER'S Restaurants, regardless of their locations, because they operate under the same brand and sell the same products. We distinguish between these types of locations when necessary.

Before the First Chester's began offering CHESTER'S Restaurant franchises on approximately March 1, 2004, our former affiliate, Giles Enterprises, Inc. ("Giles"), whose address was 2750 Gunter Park Drive West, Montgomery, Alabama 36121, licensed existing retail operators to operate quick-service chicken and sides restaurants similar to the Restaurant opportunity offered in our disclosure document in a program called the "CHESTER FRIED® Total Program" (the "Chester Fried Licensed Restaurants"). Giles began licensing operators to operate Chester Fried Licensed Restaurants in 1974; as of December 31, 2024, there were approximately 16 Operators of Chester Fried Licensed Restaurants remaining in the United States. Operators of Chester Fried Licensed Restaurants generally did not receive all the benefits of a CHESTER'S Restaurant franchise and also were not subject to all the same restrictions and obligations. For example, Chester Fried Licensed Restaurants did not pay a franchise or any other initial fee. Also, most Chester Fried Licensed Restaurants continue to operate under the "CHESTER FRIED®" name. We are now the licensor of those Chester Fried Licensed Restaurants. Operators of Chester Fried Licensed Restaurants have the right to convert their units to franchised Restaurants if they satisfy our standards for a CHESTER'S Restaurant franchisee. If they want to convert, they will sign our Agreement. There is no conversion agreement or similar document they must sign. In addition, in certain parts of the United States, we may continue allowing certain experienced foodservice operators, and chain accounts who already operate one or more Chester Fried Licensed

Restaurants, to develop and operate additional Chester Fried Licensed Restaurants. We generally anticipate doing so only when the experienced food-service operator or chain account prefers (for its own business reasons) not to acquire a CHESTER'S Restaurant franchise. With this exception, we focus on offering and granting CHESTER'S Restaurant franchises and CHESTER'S Licensed Restaurants (as described below). Chester Fried Licensed Restaurants will continue to operate for many years and might compete with you if they are located in the same geographic area where your Restaurant is located. We do not currently operate and have not operated any Chester Fried Licensed Restaurants or CHESTER'S Restaurants.

In addition to the Restaurant franchises offered in this disclosure document, in 2022 we began offering certain qualified individuals or entities the right to sign a license agreement to use the Marks, including the Primary Mark, solely to prepare and sell Chester's proprietary menu items within or from their existing foodservice or restaurant operations, including supermarkets ("CHESTER'S Licensed Restaurants", and together with the Chester Fried Licensed Restaurants, the "Licensed Restaurants"). As of December 31, 2024, there were 253 CHESTER'S Licensed Restaurants operating in the United States. Unlike the CHESTER'S Restaurant franchises offered by this disclosure document, which involve formal training on our business system, your purchase of equipment, signage, fixtures, and product inventory, your use of specific marketing materials and technology, and your build-out of the Restaurant at your existing business location following a certain layout or design (among other things), a CHESTER'S Licensed Restaurant does not involve any of those elements or features.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)